Bitcoin edged higher as tensions rise between Ukraine and Russia

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Bitcoin The move higher on Tuesday came despite a sell-off in other risk assets amid rising geopolitical tensions between Ukraine and Russia.

The price of the flagship cryptocurrency was last up less than 1% at $92,003.28, just below last week’s all-time high of $93,469.08, according to Coin Metrics. shares micro strategyThe company, which trades as a proxy for Bitcoin, rose 3%.

at the same time, ether Share price fell more than 1% Coin libraryand Robin Hood Under pressure. Both stocks benefited from trading in other non-Bitcoin assets in the cryptocurrency market.

Bitcoin rises slightly as tensions between Ukraine and Russia rise

Investors reacted overnight to reports that Russian President Vladimir Putin warned the United States to lower the threshold for the use of nuclear weapons in response to U.S. President Joe Biden allowing Ukraine to use U.S. missiles against military targets in Russia.

Bitcoin has recently benefited from enthusiasm for cryptocurrencies following the U.S. presidential election. That pushed Bitcoin to new records and sent smaller crypto assets surging. Like gold, cryptoassets are viewed by many investors as “non-confiscatable” long-term hedges against geopolitical uncertainty.

“Bitcoin’s most significant long-term correlation is its negative correlation with the U.S. dollar and its positive correlation with money supply growth,” Matt Sigel, director of digital asset research at VanEck, recently explained on CNBC’s “Squawk Box.”

“Bitcoin is a chameleon,” Siegel added. “Its relevance changes over time; it’s hard to predict what it will be relevant to in the short term.”

Bitcoin has previously been viewed as a safe haven. For example, it outperformed during the regional banking crisis in early 2023. But since Bitcoin is also a risky asset without a long history, and its extreme volatility can favor short-term traders, it’s hard for others to argue that Bitcoin will necessarily always be attractive. Citigroup, for example, this week reiterated the bank’s view that Bitcoin does not have store-of-value properties.